This paper addresses the differences between the Modigliani-Miller [M&M] model (1958, 1963) and the Miles-Ezzell [M&E] model (1980, 1985). The main difference between these two models concerns the stochasticity of the free cash flows. While M&M assumes a strictly stationary process, M&E's...

This paper examines the impact of earnings quality (EQ) on the Vietnam companies' cost of debt (COD). We use data from companies listed on the Vietnam stock market from 2010 to 2019. In this paper, we develop a model to investigate the influence of audit quality and foreign ownership on COD. We...

The objective of this paper is to analyze the suitability of the Total Market Return approach within the requirements of the capital asset pricing model, and for the purpose of business valuation, particularly in light of its endorsement by the institute of German auditors (IDW). First, we...

We examine whether analysts' cash flow forecasts improve firm value. First, we analyze whether the joint issuance of financial analysts' earnings and cash flow forecasts improve firm value. Second, we analyze whether the quality of analysts' cash flow forecasts improve firm value. The empirical...

This study compares the estimation errors of several present value discounting conventions (end-of-year, mid-year, and the more recently proposed harmonic mean convention) for a uniform distribution of intra-period cash flow - continuous and discrete. Our results show that the mid-year...

There is still controversy regarding the relevance of cash flow versus accruals. Relevant information can be assessed in multiple ways, including its value relevance and predictability. This paper then compares the value relevance and predictive value of accruals and cash flow measures to...

The objective of our paper is to analyze, how valuation practice deals with inflation especially for the terminal value, and how company value is influenced by assumptions set by practitioners. For that reason, we examine how vulnerable companies could be regarding struggles to pass on...